Property fund IPUT has paid €26.5 million for the Uniphar distribution centre at Citywest Business Campus in Dublin 24 in a sale and leaseback deal which will provide the fund with an income yield of 7.7 per cent.

The high quality distribution and office facility extends to 21,367sq m (230,000sq ft) and was developed specially for Uniphar in 2009 at a cost of €65 million. It has 300 car-parking spaces on a site of 11.73 acres.The company has taken a 20-year lease with no break options at an initial rent of €2.1 million with fixed rental increases every five years.

Uniphar is a leading wholesaler and provider of services in the pharmaceutical and healthcare sector and has an annual turnover of more than €1 billion. Company CEO Ger Rabbette said they were pleased with the deal which enhances their balance sheet, drives down their leverage to less than three and gives them the resources to grow their business. "It's a win-win for us and represents the final step in a fundamental reorganisation of the Uniphar Group which has taken four years to complete and puts us in a strong position for growth by delivering new services to our strong customer base."

Michael Clarke, head of investment at IPUT, said the acquisition of the logistics facility would deliver strong income returns and was consistent with their investment strategy of investing in quality assets. Lisney advised IPUT and Uniphar was advised by Capnua.

IPUT has also completed the purchase of 27 Henry Street which is let on a 10-year lease from 2011 to Holland & Barrett. The fund paid €3.5 million for the 510sq m (5,500sq ft) building which is rented at €220,000 per annum and will show a net return of 6 per cent.

The acquisition is likely to strengthen IPUT’s resolve to acquire the adjoining properties at 18-21 Henry Street which are for sale as part of the Capital Collection.